The Marshall Liberal Government’s transformation of South Australia’s energy system takes another step forward with early site works at Australian Gas Networks’ (AGN) Hydrogen Park SA (HyP SA).
HyP SA strengthens the state’s status as a leader in renewable technology, a first mover in hydrogen production and the jobs that investment promises to bring to South Australia.
“Hydrogen is a fuel of the future and the installation of a 1.25 megawatt electrolyser, the largest of its kind in Australia, at the Tonsley Innovation District puts South Australia at the head of pack striving to unlock its commercial potential,” said Minister for Energy and Mining Dan van Holst Pellekaan.
“Hydrogen Park SA is an $11.4 million demonstration project delivered and funded by Australian Gas Networks, supported by a $4.9 million grant from the South Australian Government.”
Hydrogen produced by the electrolyser using renewable electricity and water will be injected into South Australia’s gas supply as part of a five-year demonstration project.
The hydrogen will be blended with natural gas and delivered through the existing gas network to more than 700 properties in nearby Mitchell Park at no additional cost to residents.
Minister for Energy and Mining Dan van Holst Pellekaan said this project will demonstrate how integrating electrolysers into the electricity and gas networks can support energy stability.
“This is particularly important as more renewable electricity generation capacity comes onto the grid,” said Minister van Holst Pellekaan.
“Producing a clean burning gas like renewable hydrogen supports Energy Networks Australia’s plan to advance gas networks towards net-zero emissions by 2050.”
AGN's Chief Executive Officer Ben Wilson said the decarbonisation challenge is enormous.
“Many solutions are needed for Australia to meet its emission reduction targets, and that includes gas stepping up to play its part,” said Mr Wilson.
"Developing the hydrogen economy will also play a key role and the momentum around hydrogen is building with burgeoning research and development underway.”
South Australia is well positioned to not only produce and consume 100% green hydrogen but to export it to countries like the Republic of Korea, Japan, China and Singapore which have committed to creating a hydrogen-based economy.
“Exporting hydrogen made from South Australia’s abundant sun and wind resources presents a significant economic opportunity for our state and we are working towards creating this new industry,” said Minister van Holst Pellekaan.
Construction of Hydrogen Park South Australia will now begin with the electrolyser expected to arrive early next year and hydrogen production scheduled to start in mid-2020.
The South Australian Government has further committed to support Australian Gas Infrastructure Group’s virtual Australian Hydrogen Centre that will focus on research, feasibility studies and sharing knowledge around greater use of hydrogen in the gas networks, including the findings from Hydrogen Park SA’s Mitchell Park project.
South Australia’s Hydrogen Action Plan was released in September this year: http://www.renewablessa.sa.gov.au/contehttp://www.renewablessa.sa.gov.au/content/uploads/2019/09/south-australias-hydrogen-action-plan-online.pdfnt/uploads/2019/09/south-australias-hydrogen-action-plan-online.pdf
The State Government also worked with Australia’s Chief Scientist Dr Alan Finkel to develop the National Hydrogen Strategy. The COAG Energy Council agreed to the strategy on 22 November 2019.